Dutton defends $1bn hospital offer

Opposition health spokesman Peter Dutton has defended the federal coalition's $1 billion offer to independent MP Andrew Wilkie because the Hobart hospital was "falling down around the doctors' ears".

Mr Wilkie on Thursday rejected the coalition's "intoxicating" offer to rebuild the hospital because he couldn't see where the money would come from. Instead, the independent pledged his support to Prime Minister Julia Gillard to form a minority government, after Labor's much smaller offer for the hospital - $100 million upfront and more money to be negotiated from the Health and Hospitals Fund.

Mr Dutton said there had been a concerted effort by doctors, patients groups and Tasmanians for a number of years to get an extensive refurbishment or replacement of the Hobart hospital.

"Mr Wilkie had it at the top of his wishlist," Mr Dutton told reporters in Canberra on Friday.

"It was ethical to ask for the billion dollars and that's the case that he put. This wasn't something he dreamt up ... that's why we made the decision that we did, and we stand by that decision."

Opposition finance spokesman Andrew Robb has said the $1 billion plan would go ahead if the coalition forms government.